COMPETITION LAW1

Name – Mitrajsinh parmar

Roll no – 56

INTRODUCTION:
Competition is the act of the sellers individually seeking to acquire the patronage of buyers in
order to achieve profits or market share. The Competition Act, 2002 was enacted by the
Parliament of India and replaced The Monopolies and Restrictive Trade Practices Act, 1969. It is
in effect to govern Indian competition law. After its enactment The Competition Act, 2002 has
been amended twice, The Competition (Amendment) Act, 2007 and The Competition
(Amendment) Act, 2009. Two of the main features of the Competition Act, 2002 is the
framework it provides for the establishment of the Competition Commission, and the tools it
provides to prevent anti-competitive practices and to promote positive competition in the
Indian market.

DISCUSSION:
(1) A dispute between S limited and T limited is pending in the competition commission and
to acquire the services of experts under the provisions of companies act 2002. The Act
seeks to provide the legal framework and tools to ensure competition policies are met
and to prevent anti-competition practices and provide for the penalisation of such acts.
The Act protects the free and fair competition which protects the freedom of trade,
which in turn protects the interest of the consumer. The Act seeks to prevent
monopolies and also to prevent unnecessary intervention by the government. The main
objectives of the Competition Act, 2002 are:
 to provide the framework for the establishment of the Competition Commission
 to prevent monopolies and to promote competition in the market
 to protect the freedom of trade for the participating individuals and entities in the
market
 to protect the interest of the consumer

1
Parmar Mitrajsinh, B.A.LL.B (HONS) IV, Roll No.56, PRN: 2016033800102561, Baroda School of Legal Studies, The
Maharaja Sayajirao University of Baroda.
  In simple words, Anti-Competitive agreements are agreements that are made by two or
more companies competing in the same market to fix prices or reduce stocks etc, so as
to manipulate the market favourably for them. This has the effect of the companies
reducing the competition in the market which adversely affects the end consumer.
 Private companies represent a different set of relationships in terms of ownership, risk and
reward as compared to public companies. Since private companies, do not access capital
markets, they require less rigorous protection for their shareholders. They however
represent an important organizational form for conduct of business. Therefore there is a
case for lighter regulatory overhang over private companies. The existing law provides for
certain relaxations to private companies on account of their nature. We are of the view that
this approach should be continued and amplified where appropriate. While good Corporate
Governance is equally important for success of such private companies, the obligation for
dissemination of information of corporate process should be so structured that such
enterprises do not lose the flexibilities in conduct of their business. In particular, the law
should enable a private company to take any decision it is otherwise empowered to take,
without observing the formalities of the Act if the members of the company unanimously
agree. A simplified circular resolution procedure should also be considered where
unanimity is not possible. Since disputes may also arise amongst the members of such
companies, the costs of which may ruin the company, the regime for private companies
should contain dispute resolution procedures, simplified to the extent possible.
In simple words, Anti-Competitive agreements are agreements that are made by two or
more companies competing in the same market to fix prices or reduce stocks etc, so as to
manipulate the market favourably for them. This has the effect of the companies reducing
the competition in the market which adversely affects the end consumer. 
The Competition Act, 2002 defines anti-competitive agreements as such in section 3 where
it states, “No enterprise or association of enterprises or individuals or association of
individuals may enter into an agreement regarding production, supply, distribution, storage,
acquisition or control of goods or provision of services which may adversely affect the
competition in the Indian market”.     
Business Operations in India necessitates the knowledge of the various laws and regulations
and also the implementation of the same. Competition in the market is a huge challenge
which needs to be dealt with carefully. It is essential for the businesses to realize that
although competition brings prosperity, thriving and striving shall be a continuous
process.234

2
https://www.mca.gov.in/SearchableActs/Section2.htm
3
http://www.bareactslive.com/ACA/ACT390.HTM
4
https://www.cci.gov.in/sites/default/files/cci_pdf/competitionact2012.pdf